IDEAS home Printed from https://ideas.repec.org/a/prg/jnlaop/v2014y2014i3id440p3-16.html
   My bibliography  Save this article

Is the Chinese Currency on the Way to the World Currency Status?
[Je čínská měna na cestě k pozici světové měny?]

Author

Listed:
  • Martina Jiránková

Abstract

The article deals with the aspiration of the Chinese currency to become the world currency status. The world currency must perform as a store of value, means of exchange, and an accounting unit internationally for governments as well as the private sector. The important conditions of this position are an important share in the world's GDP and the global trade, stability of the domestic economy, and financial markets of high quality and depth. The last one is the most problematic of the given assumptions. Because of it, China has started a reform of its financial sector, and this reform has been accelerated since 2012. The convertibility of the Chinese currency is planned in several stages: gradually from its use in international trade, to international investments, and finally in international reserves. So far, payments for trade transactions have been fully liberalised. As for financial transactions, obstacles are gradually reduced. The internationalisation of the Chinese currency is taking place in the wider context of the world economy, which the text also discusses.

Suggested Citation

  • Martina Jiránková, 2014. "Is the Chinese Currency on the Way to the World Currency Status? [Je čínská měna na cestě k pozici světové měny?]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(3), pages 3-16.
    • Handle: RePEc:prg:jnlaop:v:2014:y:2014:i:3:id:440:p:3-16
    DOI: 10.18267/j.aop.440
    as

    Download full text from publisher

    File URL: http://aop.vse.cz/doi/10.18267/j.aop.440.html
    Download Restriction: free of charge
    File URL: http://aop.vse.cz/doi/10.18267/j.aop.440.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.aop.440?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eichengreen, Barry, 2012. "Exorbitant Privilege: The Rise and Fall of the Dollar," OUP Catalogue, Oxford University Press, number 9780199642472.
    2. Fang, Ying & Huang, Shicheng & Niu, Linlin, 2012. "De facto currency baskets of China and East Asian economies: The rising weights," BOFIT Discussion Papers 2/2012, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. repec:zbw:bofitp:2012_002 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reiss, Daniel Gersten, 2014. "Invoice Currency in Brazil," MPRA Paper 59412, University Library of Munich, Germany.
    2. Pilar Piqué, 2016. "La jerarquía de monedas nacionales y los problemas financieros actuales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(34), pages 69-85, January-J.
    3. Masahiro Kawai, 2014. "Asian Monetary Integration : A Japanese Perspective," Governance Working Papers 24158, East Asian Bureau of Economic Research.
    4. Marcel Fratzscher & Arnaud Mehl, 2014. "China's Dominance Hypothesis and the Emergence of a Tri‐polar Global Currency System," Economic Journal, Royal Economic Society, vol. 124(581), pages 1343-1370, December.
    5. Ethan Ilzetzki & Carmen M. Reinhart & Kenneth S. Rogoff, 2020. "Will the Secular Decline in Exchange Rate and Inflation Volatility Survive COVID-19?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(3 (Fall)), pages 279-332.
    6. Ng, Joe Cho Yiu & Leung, Charles Ka Yui & Chan, Suikang, 2022. "Corporate Real Estate Holding and Stock Returns: International Evidence from Listed Companies," MPRA Paper 111691, University Library of Munich, Germany.
    7. Fischer, Christoph, 2016. "Determining global currency bloc equilibria: An empirical strategy based on estimates of anchor currency choice," Journal of International Money and Finance, Elsevier, vol. 64(C), pages 214-238.
    8. Ethan Ilzetzki & Carmen M Reinhart & Kenneth S Rogoff, 2019. "Exchange Arrangements Entering the Twenty-First Century: Which Anchor will Hold?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 599-646.
    9. Emmanuel Farhi & Matteo Maggiori, 2018. "A Model of the International Monetary System," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 295-355.
    10. Ashwath Komath, 2022. "Bancor Comes of Age: A Case for an Indian Bitcoin Reserve," India Quarterly: A Journal of International Affairs, , vol. 78(1), pages 121-142, March.
    11. Joshua Aizenman & Hiro Ito, 2023. "Post COVID‐19 exit strategies and emerging markets economic challenges," Review of International Economics, Wiley Blackwell, vol. 31(1), pages 1-34, February.
    12. Martin Grančay, 2012. "Recenzia - Paul Krugman, Maurice Obstfeld a Marc Melitz - International economics, theory and policy (9. vydanie)," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 10(2), pages 147-148.
    13. Eichengreen, Barry & Flandreau, Marc & Mehl, Arnaud & Chitu, Livia, 2017. "International Currencies Past, Present, and Future: Two Views from Economic History," OUP Catalogue, Oxford University Press, number 9780190659455.
    14. Agnès Bénassy-Quéré & Yeganeh Forouheshfar, 2013. "The Impact of Yuan Internationalization on the Euro-Dollar Exchange Rate," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00961708, HAL.
    15. David, Géraldine & Li, Yuexin & Oosterlinck, Kim & Renneboog, Luc, 2021. "Art in Times of Crisis," Discussion Paper 2021-026, Tilburg University, Center for Economic Research.
    16. Liu, Tao, 2015. "Trade finance and international currency," MPRA Paper 64362, University Library of Munich, Germany.
    17. Vespignani, Joaquin L. & Ratti, Ronald A., 2016. "Not all international monetary shocks are alike for the Japanese economy," Economic Modelling, Elsevier, vol. 52(PB), pages 822-837.
    18. Konstantin Egorov & Dmitry Mukhin, 2019. "Optimal Monetary Policy under Dollar Pricing," 2019 Meeting Papers 1510, Society for Economic Dynamics.
    19. Daniel Gersten Reiss, 2015. "Invoice currency: Puzzling evidence and new questions from Brazil," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 16(2), pages 206-225.
    20. McCauley, Robert N., 2015. "Does the US dollar confer an exorbitant privilege?," Journal of International Money and Finance, Elsevier, vol. 57(C), pages 1-14.

    More about this item

    Keywords

    Renminbi internationalisation; world currency; Mundell-Fleming trilemma; Triffin's dilemma; capital movement liberalisation;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2014:y:2014:i:3:id:440:p:3-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.